Utkarsh Small Finance Bank has announced a credit rating update from CARE Ratings Limited regarding its Tier II Bonds, with the rating agency maintaining the CARE A rating while revising the outlook from Stable to Negative. The development was communicated to stock exchanges on January 05, 2026, as part of regulatory disclosure requirements under SEBI Listing Regulations.

Rating Details and Financial Impact

The credit rating action covers Tier II Bonds worth ₹200.00 crores, representing a significant portion of the bank's capital structure. CARE Ratings Limited reaffirmed the existing CARE A rating, indicating the agency's continued confidence in the bank's creditworthiness, while the outlook revision signals potential challenges ahead.

Microfinance Segment Challenges

The outlook revision to Negative stems from continued stress in the microfinance segment, which is impacting the bank's operational performance. CARE Ratings cited specific concerns about asset quality deterioration and profitability pressures as key factors influencing this decision.

The microfinance segment stress is affecting two critical areas of the bank's operations:

• Asset Quality: Deteriorating loan portfolio performance in the microfinance business
• Profitability: Reduced earnings potential due to increased provisioning and collection challenges

Regulatory Compliance and Disclosure

Utkarsh Small Finance Bank fulfilled its regulatory obligations by promptly disclosing the rating action to both BSE Limited and National Stock Exchange of India Limited. The communication was signed by Company Secretary & Compliance Officer Muthiah Ganapathy and made available on the bank's official website.

The detailed rationale behind CARE Ratings' decision can be accessed through the rating agency's official website, providing stakeholders with comprehensive information about the assessment criteria and risk factors considered in the rating review.

Market Implications

The Negative outlook revision, while maintaining the CARE A rating, indicates that CARE Ratings will closely monitor the bank's performance in addressing microfinance segment challenges. This development may influence investor sentiment and the bank's future funding costs, particularly for similar debt instruments.

Utkarsh Small Finance Bank Limited has announced the appointment of Dr. Ram Jass Yadav as Additional Director, marking a significant addition to its leadership team. The appointment was approved during a board meeting held on January 3, 2026, based on the recommendation of the Nomination and Remuneration Committee.

Board Approval and Appointment Details

The Board of Directors approved Dr. Ram Jass Yadav's appointment as Additional Director in the category of Non-Executive Non-Independent, liable to retire by rotation. The appointment is subject to approval from the bank's shareholders and carries a term of five consecutive years.

Professional Background and Experience

Dr. Ram Jass Yadav brings extensive banking expertise spanning over 40 years across diverse domains including retail, corporate, treasury, credit, risk management, compliance, and governance. His experience encompasses rural, metro, and international banking environments, with particular strength in driving digital transformation and strategic planning.

His career began with Bank of Baroda in 1984, where he progressed to the position of Chief General Manager, the highest cadre in the bank. During his tenure, he served on the boards of nine financial institutions and was appointed by the Government of India as Executive Director of Punjab & Sind Bank.

Academic Credentials and Current Role

Dr. Yadav's academic qualifications demonstrate his comprehensive understanding of banking and finance:

• CAIIB (All India Topper)
• MBA
• Qualified Company Secretary
• Cost & Management Accountant
• Ph.D. in Banking & Finance from M. L. Sukhadia University of Udaipur

Currently, he serves as Professor of Practice at IGU, Rewari (Haryana), where he contributes to academia and mentors future leaders in banking and finance.

Regulatory Compliance and Disclosure

The bank confirmed that Dr. Ram Jass Yadav is not debarred from holding the office of director by virtue of any order from the Securities and Exchange Board of India (SEBI) or any other regulatory authority. The board meeting commenced at 11:30 a.m. (IST) and concluded at 3:30 p.m. (IST) on January 3, 2026.

The disclosure has been made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The information will be available on the bank's website at www.utkarsh.bank.in .